Home insurance can get tricky. There are a lot of factors that go into determining the cost of home insurance. Nonetheless, there are some areas of the country that have higher rates and some areas of the country that have lower rates. It can even go so far as certain ZIP Codes paying more or less for their insurance. So, the question of what is the average cost of home insurance is a little complicated. Still, we’re going to explain what states have the highest rates and which have the lowest – and we’ll tell you where Georgia falls in the ranking. We’ll also explain the reasons for the difference in rates from state to state.
What’s the average cost of home insurance?
Okay. First, let’s start with some nationwide numbers for the average cost of home insurance. Here’s where the national averages stand:
- $200,000 of dwelling coverage, $1,000 deductible, and $300,000 liability coverage: $1,244/year
- $300,000 of dwelling coverage, $1,000 deductible, and $300,000 liability coverage: $1,737/year
- $400,000 of dwelling coverage, $1,000 deductible, and $300,000 liability coverage: $2,252/year
What states have the lowest average cost of home insurance?
There are a few states that are very far below the national average as far as their average insurance rates. Check out the average rates below*:
- Hawaii – $357/year
- Vermont – $606/year
- Idaho – $ 642/year
*Rates based off of a home with $200,000 of dwelling coverage, a $1,000 deductible, and $300,000 liability insurance.
What states have the highest average home insurance rates?
There are also some states with an average cost of home insurance that is higher than the national average…by quite a bit. Check out these average home insurance premiums*:
- Oklahoma – $2,666/year
- Louisiana – $3,011/year
- Florida – $3,591/year
*Rates based off of a home with $200,000 of dwelling coverage, a $1,000 deductible, and $300,000 liability insurance.
What’s the average cost of home insurance in Georgia?
Since we’re in the Atlanta area, we have to see where Georgia stacks up with its home insurance rates.
Georgia actually doesn’t do too badly with its insurance rates. The average cost of home insurance in Georgia is $1,114, which is 10% below the national ranking of $1,244. Not too bad! Of course, the cost of home insurance in Georgia depends on a lot of factors, but this gives a general idea.
Why do some states have higher home insurance average rates than others?
So, why the difference in rates around the country? Why do some states get to enjoy low rates while others pay a lot of money for home insurance every year? It’s definitely not random or arbitrary. The reason that states like Florida, Louisiana, and Oklahoma see high rates is that there are many, many natural disasters that tend to befall them. Louisiana and Florida often get hit with hurricanes, and Oklahoma has a ton of tornadoes every year.
When they evaluate rates, insurance companies look at the ZIP Code and data from the area where the home is located. If there’s a high instance of weather-related events and claims, burglaries, or vandalism, for example, rates will probably be higher in those areas. The reason carriers look at the surrounding area and examine a lot of data about them is that they want to know how likely a home in that area is to experience a claim. If the data shows there’s a high risk of a claim, rates are going to be higher. If the data shows there’s a low instance of claims, rates will probably be lower.
What factors affect the cost of home insurance?
But of course, your rates aren’t determined just because of the state you live in. Insurance premiums are a little more specific than that. Like we said, insurance companies look at a lot of factors when they’re setting home insurance prices, and most of them are pretty specific to your house and your immediate area.
Here are some of the factors that can affect home insurance rates.
- The material your home is constructed of
- Reconstruction value of the home
- Age of the home
- Roof
- Weather-related disasters in the area
- The crime rate for your area
- Your credit score
- How close you are to a reliable fire station
- Your limits of coverage
- Your deductible
- Home insurance discounts
- Your claims history
- Where the fire department is located
So, that’s what you need to know about the average cost of home insurance. Rates vary from ZIP Code to ZIP Code and from state to state. The best way to find out how much your home insurance will cost is to get a home insurance quote. And our agents would be happy to help with that. We can shop your rates so you can get multiple home insurance quotes, compare coverages and pricing, and save money. All you have to do to get started with your home insurance quotes is fill out our online form or give us a call today.